Module 5 Buffer Role of Agriculture in Times of Crisis: The Ghanaian Experience - PowerPoint PPT Presentation

Module 5 Buffer Role of Agriculture in Times of Crisis: The Ghanaian Experience. Principal Investigator: Daniel Bruce Sarpong Collaborator: S. Asuming-Brempong Department of Agricultural Economics & Agribusiness University of Ghana, Legon-Accra GHANA. Background to the study.

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Focusing on the buffer role of agric at the HH level, the main conclusion is

The rural household support system points to a much more enhanced role of the rural sector as an institutional set-up complementing an incompleteness in formal social security markets. Agriculture (rural HH) is not just a source of food, employment, income and of labor supply.

The question is: How do we enhance the existence and effectiveness of this positive externality whereby agriculture (the rural sector) engages in unemployment risk sharing schemes? We see that:

As RHPCI increases, there is an increase in remittances from migrants (premiums goes up, increasing investment funds at the rural level)

As RHPCI increases, there is increased remittances to migrated HH members to cushion economic effects

The solution lies in helping the rural sector reduce aggregate risks in income through increased rural activity diversification. The policy implications include